CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

Greenback focuses on data

USD/JPY has been oscillating around the ¥120.00 level for a while and it just seems the directionless period is slowly coming to an end.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Greenback
Source: Bloomberg

The pair is back below ¥120.00 today and is about to test an uptrend that’s been in place since October last year. A rejection of ¥121.00 has triggered a bout of short term weakness and traders will be looking to see if support holds in the ¥119.50 region.

While there isn’t much happening on the JPY side of the equation this week, there is plenty of activity on the USD side. On the calendar today we have retail sales, PPI, the NFIB small business index reading and business inventories data.

Whichever way the data swings, it is likely to have an impact on the greenback. Should the data disappoint, resulting in a close below ¥119.50, then we could be in for some USD/JPY unwinding. The rest of the week is also likely to bring further volatility as we get other key readings, including US GDP. If ¥119.50 is broken, then a move back below ¥119.00 could be on the cards.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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